Indian budget airline Air Deccan is to undertake major expansion after a deal for 30 Airbus A320s for delivery from 2007.

The order will increase Air Deccan's A320 fleet to 37 aircraft - three A320s are already operated on lease, with two more due to arrive next month and a further two in September that were purchased last year. Air Deccan's existing A320 fleet is powered by the International Aero Engines (IAE) V2500, which has been selected for the new aircraft.

The carrier, which launched operations in August 2003 with ATR 42s, has been expanding rapidly but faces competition from new airlines entering the market. It currently operates nine ATR 42s.

Kingfisher, a start-up backed by India's United Breweries Group, aims to launch this year using A320s, initially on domestic trunk routes. Another Indian conglomerate, Wadia Group, plans to launch a low-cost airline using A320s or Boeing 737s.

Kingfisher has 10 174-seat A320s on order for delivery from September, but will launch services in the second quarter when the first of four A320s arrives on lease from Debis AirFinance.

The airline recently switched powerplant selection from CFM International, after earlier plans to lease CFM56-powered A320s from GE Capital Aviation Services were scrapped in favour of the Debis deal.

*  Chinese low-cost start-up Spring Airlines has selected the Airbus A320 over the Boeing 737-800 and aims to launch domestic operations in the second quarter from Shanghai's Hongqiao Airport. Owned by travel agency group Spring International Travel Service, the airline will receive its first A320 in April with a two more arriving this year. The fleet will grow to 15 aircraft by the end of 2008, when the carrier aims to launch international services.

Source: Flight International